The good news is next week's $81 B in coupons should be a bit cheaper for Treasury

EB's picture

At the rate things were going in mid-January, the 30 yr yield was set to blast through the June 09 highs.  Amazing what a little equities downturn will get you, as a 9% correction in the S&P 500 has now rewarded T-Bond futures with a 2% rally and a 100bps decline in the cash yield (not too disimilar from Keynsian stimulus efficiency).  With these ratios, the 30 yr should retest its October low by the time the S&P is retesting its March low.  Don't worry though, the next massive corporate to sovereign risk transfer scheme, otherwise known as QE 2.0, is being vetted as we speak at 33 Liberty.